Although the Principality is a highly cosmopolitan area, with residents from more than 140 nationalities, Americans, Asians, Middle Easterners, and Latin Americans show limited interest in Monaco’s real estate market or establishing residency. Here’s why.
Whether due to tax, banking, geographic, or cultural factors, certain nationalities are notably underrepresented in Monaco and are therefore less active in its real estate market. For instance, Asian buyers are rare. According to Florian Valeri, director of Valeri Agency, this is partly due to their “often community-focused” investment style. “In large cities, you can see Asian or Chinese neighborhoods where hundreds of families settle in the same area, creating a whole economy around them. Due to Monaco’s limited territory, it will never have that community feel they are seeking,” he explains. “It’s a shame because Monaco offers many appealing aspects: the French lifestyle, casinos, and fine dining.”
The few Asian buyers interested in the Monégasque market typically go “through very closed networks,” says Eric Cancemi, a negotiator at Miells Christie’s. Does this mean that this currently distant clientele might eventually be drawn to Monaco? Not necessarily. A slight shift seems to be happening, however. Some real estate agents note a growing interest, especially from Chinese clients, even if it’s recent. “It’s quite new,” notes Christian Miceli, managing partner at CM Monaco Real Estate. He even predicts that China and India will become “key markets in the coming years.”
Middle East: “A chain of intermediaries before reaching the final client”
What about Middle Eastern clients? According to experts, some families from the UAE do inquire about potential opportunities in Monaco, yet few finalize any purchases. A significant barrier is the lack of large properties within the Principality. But that’s not the only reason.
“Middle Eastern buyers are accustomed to having very large spaces, which is extremely rare here in Monaco. They’re also taken aback by Monaco’s prices relative to the available space,” adds Valeri. “Moreover, they have a unique way of doing business. In large families, the client’s identity is rarely disclosed—this is simply not part of their practice. There’s often a whole chain of intermediaries before reaching the final client. This poses compliance challenges for us, as we need to know the identity of the final beneficiary.” This process slows down the commercial exchange, and the connection often fades away over time.
Another observation: affluent Middle Eastern clients who stay in Monaco for a month or more generally prefer luxury hotels like the Hôtel de Paris, as it offers them hotel services without the administrative responsibilities of real estate ownership. “The hotel is an easier home base for them,” one professional concludes.
FATCA: Americans Face a Series of Tax and Banking Obstacles
Despite frequent visits, Americans are rare as real estate buyers in Monaco. According to the 2023 IMSEE figures, only 449 Americans reside in the Principality. This scarcity is primarily due to specific tax and banking hurdles. Americans do not benefit from Monaco’s tax advantages, as their tax obligations are tied to their citizenship rather than their place of residence. American citizens remain liable for U.S. taxes, regardless of where they live, which often leads them to consider alternatives. “As a result, they often prefer to buy larger properties at lower prices in neighboring French towns while enjoying Monaco for their daily activities,” Valeri observes.
Additionally, Monégasque banks hesitate to open accounts for Americans due to the Foreign Account Tax Compliance Act (FATCA), which imposes complex requirements on financial institutions. “The reporting system required by banks for American residents is very restrictive, and not all banks are equipped to cater to this clientele,” confirms Miceli. Cancemi echoes this: “We have virtually no American clients, primarily due to their tax system but also due to the many administrative formalities imposed on them, as they are closely monitored by U.S. authorities. Opening a bank account in Monaco is nearly impossible for an American.”
As for people from Latin America, the Principality seems too far removed to make relocation appealing. “Argentines and Venezuelans, for example, typically prefer to settle closer to home, such as in the Cayman Islands,” the professional concludes.
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